Impact of Smart, Green, Resilient, and Lean Manufacturing System on SMEs’Performance: A Data Envelopment Analysis (DEA) Approach

In the present era of the fourth industrial revolution, small and medium enterprises (SMEs) are adopting smart, green, resilient, and lean (SGRL) practices to enhance their performance and achieve sustainability. For SMEs to perform well in their supply chains and satisfy customers, the impact of th...

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Bibliographic Details
Published in:Sustainability 2023-01, Vol.15 (2), p.1379
Main Authors: Abdullah, Ahmad, Saraswat, Shantanu, Talib, Faisal
Format: Article
Language:English
Subjects:
Case studies
Cost control
Criteria
Data envelopment analysis
Decision making
Digitization
GDP
Gross Domestic Product
Lean manufacturing
Linear programming
Literature reviews
Manufacturers
Manufacturing
Natural resources
Product quality
Production costs
Small business
Supply chains
Sustainability
SWOT analysis
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Summary:In the present era of the fourth industrial revolution, small and medium enterprises (SMEs) are adopting smart, green, resilient, and lean (SGRL) practices to enhance their performance and achieve sustainability. For SMEs to perform well in their supply chains and satisfy customers, the impact of the combined effects of SGRL manufacturing on SMEs’ performance needs to be studied. Although SGRL manufacturing has been studied independently in order to understand its impact on SMEs’ performance, there is still a need for significant research on its combined effect. The objective of the present work is to evaluate the performance of SMEs and to understand the combined effect of SGRL manufacturing on SMEs’ performance. This research applied the data envelopment analysis (DEA) methodology to evaluate 30 SMEs identified in the northern region of India. A DEA model was developed that considers environmental, operational, and social performances as output criteria while considering SGRL practices as input criteria. Sixteen decision-making units (DMUs) were identified as inefficient using the DEA approach and one of them was considered for a case study for comparison with efficient SMEs. The case study employed a Strength, Weakness, Opportunity, and Threat (SWOT) analysis to provide remedial action to one of the selected underperforming SMEs, i.e.,SME11. The strengths, weaknesses, opportunities, and threats of SME11 were identified and strategies were suggested by benchmarking SME11 with one of the efficient SMEs, i.e., SME23. The findings of this research work will help policymakers, owners, and managers of SMEs take necessary actions and enhance their performance by adopting the proposed DEA model using SGRL manufacturing practices.
ISSN:2071-1050
2071-1050
DOI:10.3390/su15021379